IMF Chief Urges GCC to Put More Effort in Attracting Private Sector

Managing Director of the International Monetary Fund Christine Lagarde said Tuesday that the GCC’s efforts to attract the private sector remain below par, calling on the council’s members to slash public spending.

Speaking at Georgetown University School of Foreign Service in Qatar, Lagarde said that the declines in the prices of oil can be turned into an opportunity. She highlighted what the State of Qatar did in attracting foreign investments and enhancing the private sector as an example that should be followed.

In light of the decline in price of oil, the IMF Managing Director said that GCC countries should not turn into their reserves but look to reform their economies by backing the private sector. Another measure that Lagarde suggested was implementing a tax policy and diversifying the economy.

On the challenges facing the global economy, Lagarde said that employment was one of the biggest challenges as 200 million people remain unemployed worldwide. The refugee crises are another problem as 60 million people have been displaced or are seeking refuge. Additionally, global growth remains well below the required levels.

As a result, the IMF chief stressed on the importance of investing in education and promoting the role of women as two important factors of economic development.